Headlines The personal allowance will increase to £10,000 from 5th April 2014 meaning the first £10,000 you earn personally will not be taxed. New scheme for tax free childcare meaning that from April 2015 you may claim up to £1,200 per child towards your childcare bills if you are a working parent. This will apply [...]
How to calculate your profit correctly
February 27, 2013 by Leave a Comment
Calculating your profit correctly depends on a multitude of factors, such as making sure your records of income and expense are complete, making sure you don’t forget to include items you’ve bought out of your own personal funds, etc. Another key area to consider when preparing your accounts, and your taxable profit, is the accruals [...]
VAT for small businesses
February 27, 2013 by 2 Comments
It’s important to monitor your turnover when you are a small business and check whether you have exceeded the VAT threshold or not. You have to look back at the last 12 calendar months to do this, not your accounting year. When you look back at the last 12 calendar months, if your turnover, ie sales [...]
Why should I forecast Cashflow and how should I do it?
February 27, 2013 by Leave a Comment
Cashflow forecasting is essential to any business to make sure you have the funds when you need them, work out when you might require temporary finance, and sort out how much you can take out of the business. Follow my steps below to work out how you can accurately forecast your businesses finances to give you [...]
Mums working from home – what can you claim?
February 26, 2013 by 3 Comments
If you are a self-employed sole trader mumpreneur and use part of your home for business, you can offset certain utility expenses and mortgage interest against your income, but in order for these to be allowable expenses for your business, the bills must either be partly or wholly in your name. If the bills are [...]
P11Ds – what are they and why should I get a dispensation
February 26, 2013 by Leave a Comment
P11D is the name given to a form where you record all non-cash income you have received from the company, whether or not you derive a personal benefit. These forms must be submitted by 6 July for ALL limited company DIRECTORS*. Any Class 1A NICs due as a result of P11D benefits must be paid by 22 [...]
What taxes do I need to pay and when?
February 26, 2013 by Leave a Comment
Taxes you pay as a sole trader or partnership As a sole trader or partner, you will be taxed on the profits you make from your self-employment. In a partnership, you would be taxed on your share in the partnership profits. The good news is that the first £8,105 you earn (2012-13 rate shown) is [...]
Introduction to accounts and Financial Statements
February 26, 2013 by Leave a Comment
The accruals concept Accountants use the UK GAAP (UK Generally Accepted Accounting Principles) to prepare accounts which includes adopting the accruals basis. This means you record transactions as the liability or asset falls due or is receivable. The benefit of accounting in this way is that you bring expenses incurred but not yet paid for [...]
What you need to know about bank accounts and reconciliations
February 26, 2013 by Leave a Comment
Although not mandatory for sole traders, it is certainly advisable to have a separate bank account for your business transactions as this allows you much greater control over your finances. By maintaining a separate bank account, you will be able to introduce financial controls, such as bank reconciliations, and be better able to monitor your [...]
Mumpreneurs – expenses we should be careful of claiming for tax
February 26, 2013 by 6 Comments
As cost conscious Mumpreneurs, we want to make sure we are claiming all the expenses we possibly can against our income to bring our tax bills down. However, it’s important not to claim the wrong expenses or you could pay the wrong amount of tax and there could be trouble with HMRC further down the [...]
